Downer signs development MoU for TNG’s Mount Peake mine in Australia

22 February 2016 (Last Updated February 22nd, 2016 18:30)

Downer has signed a memorandum of understanding (MoU) to provide development, construction, and mining services to TNG's Mount Peake vanadium-titanium-iron project in Northern Territory, Australia.

Downer has signed a memorandum of understanding (MoU) to provide development, construction, and mining services to TNG's Mount Peake vanadium-titanium-iron project in Northern Territory, Australia.

Under the MoU, Downer will be responsible for engineering, procurement and construction of the processing plant at the mine site, in addition to performing drilling, blasting, loading and haulage of minerals and waste materials.

The company will also provide operation and maintenance services for the plant, and build, own and operate all non-process infrastructure.

Other activities include interfacing project infrastructure, manufacture and maintenance of rolling stock and locomotives for use by the project.

"Mount Peake is estimated to have a design capacity at 17,560tpa of vanadium pentoxide, 236,000tpa of titanium dioxide and 637,000tpa of pig iron."

TNG completed a definitive feasibility study for Mount Peake in 2015, which confirmed a potential project capable of generating good returns.

Mount Peake is estimated to have a design capacity at 17,560t per annum (tpa) of vanadium pentoxide, 236,000tpa of titanium dioxide and 637,000tpa of pig iron.

TNG managing director Paul Burton said: "The MoU with Downer further expands the outstanding list of high-quality global companies who have either already agreed or are currently exploring the potential to participate in the funding and development of the Mount Peake project.

"We are very much looking forward to working with Downer over the coming months to progress towards potentially binding agreements on some of the key areas outlined in this MoU."

The Mount Peake project is located close to existing power and transport infrastructure, including the Alice Springs-Darwin Railway, the Stuart Highway and the LPG pipeline.

It consists of exploration licences covering more than 1,900km² in a highly prospective area of the western Arunta province.